Investors applaud Mundoro's cash preservation, stock up 40%

Posted: November 10, 2008, 2:15 PM by David Pett
Mining

Efforts to preserve cash are apparently paying off for Mundoro Capital Inc., after the company's third quarter net income swung into the black thanks to the lowest level of corporate expenses recorded in the past eight quarters.

Mundoro Capital, the owner of Mundoro Mining, a gold explorer with a majority interest in Maoling gold project, said its consolidated and comprehensive income for the quarter was $2,470,237 or 6¢ per share compared with a net loss of $889,964 or 2¢ per share for the previous period's quarter.

Investors are taking notice of the results, trading up the stock more than 40% or 6¢ to 22¢ at 2 p.m. ET. This time last year, shares in Mundoro were trading as high as $1.30.

Madoro Capital said it ended the quarter with $15,793,789 in cash which equates to 41¢ per share with no long term debt. In 2007, company management initiated strict cash management procedures to ensure only necessary corporate activities required the use of funds.

"This foresight has lead to a strong financial position in the wake of the current global economic conditions and has allowed the company to continue operations with a minimal cash burn rate. Those companies with cash and that demonstrate the ability to preserve cash for the next 24 months should be rewarded by the markets," the company stated.

Given the rock bottom valuations for many producing and near producing junior gold companies, Mundoro added that it is "looking to employ its financial strength and technical expertise either in conjunction with others or as the principal investor for resource assets or companies. In other words, its on the look out for bargains.